Kenya’s fintech reforms promise clarity but could delay investment
- Kenya's Central Bank is proposing a draft National Payment System Bill, 2026 that requires investors acquiring at least 10% of payment service providers to obtain written approval.
- The new bill aims to repeal existing fintech laws and introduce separate licensing categories for electronic wallets, payment gateways, and money remittance providers.
- The proposed bill includes a minimum capital requirement of KES 250 million for electronic money issuers and KES 50 million for wallet providers.
The proposed regulatory changes in Kenya's fintech sector could deter potential investors due to increased complexity and costs associated with compliance. While the intention to enhance oversight and promote competition is commendable, the execution may stifle innovation and make the market less attractive for startups, ultimately affecting the growth of the fintech ecosystem in Kenya.
